Originally Posted by lensman

Like all businesses, the cost of consumables is but a small part of the cost of providing the service. It's like they tell you on those restaurant makeover shows - if you don't include enough margin, you'll go out of business. Let's compare pre-merger RCC with today. How many drinks did UA think they could give away for free and not lose their shirts on RCCs? Two per international premium class customer. I guess they tried out giving away more and it hasn't worked out for them. Obviously another miscalculation by management based on applying a management technique based on the pre-merger CO demographic to the post-merger UA demographic and having it not work out.

We're seeing the same thing at the company I work at. The management from one side of the house is applying their management instincts to my side of the house and it has resulted in a number of issues for the firm. Ultimately they learned their lesson and are making big corrections.